In real estate, agents can either represent the seller or represent the buyer.Years ago, there was only one kind of agency - agents representing sellers.In that situation, a seller would hire an agent to sell their house.The agent had a fiduciary relationship with the seller - meaning that the agent owed the seller: accounting, obedience, loyalty, care and disclosure.A buyer would want to see houses and would get an agent to show them houses.The agent worked as a sub-agent for the seller (regardless of if their name or company name was on the sign or not).What the agent owed the buyer was: reasonable care and skill, honest and fair dealing, and disclosure of known material facts.The seller got obedience, loyalty and disclosure and the buyer got minor consideration.

The real estate commission decided in the mid 1980s that buyers deserved representation too, so they came up with Buyer's Agency.Now a buyer can hire an exclusive Buyer's Agent to represent them.When you hire a Buyer's Agent - you get a fiduciary relationship - meaning your agent owes you care, accounting, loyalty, obedience, and disclosure.Your agent is working for you, not the seller.

Who pays for the Buyer's Agent?Originally, the idea was that a buyer would pay for their own agent.That did not pan out.So the way it evolved over time is now when a seller agrees to sell their home, they agree in the contract to pay for the Buyer's Agent - even though the agent does not work for them.

So buyers get the best of all worlds!They can hire exclusive representation, and the seller is still paying for their agent out of the seller's proceeds at closing.

One misconception that some buyers have is that they can save money if they do not have a Buyer Agent represent them.This is a false conception.When the seller hires their agent, they agree to a certain percentage to be paid at closing.If the buyer does not have an agent and the listing agent (or a sub agent) handles the transaction, the seller pays the full percentage to that agent.The only person that lost was the buyer - because they no longer had anyone working exclusively for them - and still did not save any money!

Four Ways To Beat The Stress Of Buying A Home....

1. Begin with the end in mind.

Have an ultimate scenario of where you're trying to be. What will life be like when you get there? How will it be better than where you are now? Dwell on that picture and write it out, fill up at least a page about how it feels in the new place. This is imperative.

Having the goal in front of you at all times energizes you to achieve it, in spite of setbacks and frustrations. Emotions will run high and you need an anchor. You too must focus on that future goal when anxiety threatens to get the better of you.

2. Be flexible.

In monetary calculations, overestimate by a thousand dollars. In this market, anything can happen between contract acceptance and closing. It could be the inspections reveal areas of concern that the seller is unwilling to fix or the repair costs are higher than the amount limited in the contract.

Or the interest rate changes which affect the necessary down payment and closing costs, you will need to come up with. As your real estate team, we will strive to tie up loose ends as quickly as possible, but remember there is no perfect world. Most buyers feel a bit overwhelmed when taking on a new mortgage and the responsibilities of a new home.

We've seen many buyers get angry when it seems like the cost just keeps going up. Anger is caused when reality doesn't match up with expectations you had in your mind. So if you anticipate this happening in advance, you won't get angry. In fact, it'll probably go better then you expected.

3.Trust in the process.

There's just so much to do, it's easy to panic. You wonder if it will ever work out. In fact, when we bought our house, we couldn't eat for a day, we felt sick to our stomachs! You think you're taking a big chance, but the truth is you're giving yourself a big chance.

Even though you can't see every step of the way, as you move towards your goals, the way opens up. We know that you haven't moved in a long time and it's a major upheaval in your life. But we've been there many times before, and we'll be looking out for you. Trust that we know the way to get you there.

4. Get knowledge.

One thing you'll probably feel during this transition time is being out of control. It feels like everyone else has taken over your life. The seller, your lender, the appraiser, the inspectors, they all have the power to say yes or no to your moving plans. We'll try our best to let you know ahead of time what your expenses will be, and what the unknowns are. We'll tie down the loose ends as soon as possible. We'll try to get your loan approved within a reasonable time frame. We'll educate you as best as we can and let you in "behind the scenes" so you won't ever feel stupid or out of control.

5 Things You Can Do To Qualify For a Bigger Mortgage

Say you started the home buying process backwards and started LOOKING at homes before you pre-qualified yourself for a loan. Now you've found that none of the homes in your price range will measure up. What do you do? Short of robbing a bank, there are 5 things that you can do to qualify for a bigger mortgage.1. Reduce long-term debtThe first thing that lenders look at is your income to expense ratio. They compare how much money you have coming in against how much you have going out every month.We all know that a dollar will only go so far - and lenders know this particularly well. So, if you can pay off car loans, credit cards, or any other obligations against your income, you'll have more money to spend on a loan - and a lender will let you borrow more money.2. Wait until you get more incomeAnother way to look at the income-expense ratio is from the income side. If you have more money coming in, you can borrow more money. If you're expecting a raise within the next year, maybe you should wait until that comes through, before asking to borrow money for a new home.3. Add someone else to the loanAnother way to demonstrate to a lender that he will be repaid is by having someone (with a good incomes and stable job) co-sign on the loan. This way, the lender is looking at MORE income available to repay the loan. Family members Bank of Dad are the typical source of someone willing to co-sign.4. Use financing that requires lower down paymentsThe basic idea is this...the more money that you have available to spend, the more money that a lender will let you borrow. You're trading off having the money available NOW or later. If you put a large down payment on a home now, that means you may have less income available to repay a loan later.By the same token, if you make a smaller down payment, then you'll have more money available to repay a loan - and the lender is likely to let you borrow more.5. Wait for interest rates to dropInterest rates are the price that lenders charge for the use of their money. SO, when interest rates are high, it's because lenders are charging you more to use their money right now.Again, it's a trade-off between now and later. Lenders are only going to give you so much money to use over the next 15-30 years (the life of your mortgage). They work backwards from that figure using interest rates. If you have a higher interest rate, you have less money to spend now.So, if you can wait for a lower interest rate, you'll be able to get more money to spend on the home you want.

Many people never buy a home because they don’t think they have enough money for the down payment.They’ve been told that they need 10-20% of the purchase price in order to buy a home.This isn’t true.

So, why have so many real estate companies told them this?It’s simple.

Selling homes to people with 10-20% down is easier than selling homes to people who have little or no money for a down payment.Most agents prefer the easy sale.

I have a different mission:To help people.That’s why I created this special report and sent it to you with no obligation.This information is for people with good credit and income, but no money for a down payment.

Option 1:FHA Loans – Best Bet

Although this isn’t a “No Money Down” option, the FHA loan is by far one of the best alternatives for people who want to buy a home and don’t have much money to put down.With an FHA loan, you could put down as little as 3%.Plus, FHA loans are easier to qualify for.

While you can’t borrow the 3%, you can get a “gift” from a family member, borrow from your 401k, or sell some “stuff” you have lying around.At the end of this report, we’ve included a special section with great ideas for raising this small amount required for an FHA loan.

FHA loans do have requirements and restrictions:

·Not all townhomes and condos qualify.

·There is a maximum loan amount.

Option 2:Special Loan Programs

Special loan programs come and go quickly.Loan One:Allows the seller to provide the 3% down payment required for a home loan.That means no money out of your pocket if you know how to negotiate with the seller!Loan Two:Requires only 2% including closing costs – wow!That’s practically the same as no money down!

So, how do you find out what type of loan programs are available for you right now?

The best way is to work with a great mortgage broker who keeps up to speed on these special programs.If you don’t know of one, we work with at least three such mortgage professionals, and we would be happy to refer you.

Option 3:Owner Financing

Owner financing means exactly that:The owner (or seller) finances a portion of your home purchase.For example, you might borrow 80% of the value of a home from a lending institution, and “borrow” the other 20% from the owner.In this situation, the owner “carries back” a second mortgage.

Owner financing can be advantageous, especially to investors who buy up properties and then rent them out.For the average homebuyer, however, owner financing is difficult to find and requires some tricky negotiating.Even after successfully negotiating a deal, it requires some detailed work by qualified attorneys in order to protect the interests of all parties involved.

While you shouldn’t rule out owner financing, keep in mind that by looking for someone who is willing to help finance your purchase, you severely limit your choices.There are a lot of houses for sale today, but not a lot where owner financing is an option.

Option 4:Lease-to-Own

With a lease-to-own, you essentially lease a home, but make larger payments in order to begin accumulating a down payment.For example, if a house would normally lease for $800, you might lease it for $1,000/month, with $200/month going into a special account.At the end of a specified period, you buy the home using the money in that special account as your down payment.However, if you decide somewhere along the line not to purchase the home, all of the money in the special account then goes to the seller.

Think of this option as renting with a forced savings account.If you can find someone willing to do this, it’s not a bad option.However, most people who are selling their homes need their money out of it in order to buy their next home, so finding someone who is willing to lease to you may prove more difficult.

Where to Begin

Now that you have four good options for buying a home for little or no money down, where is the best place to begin?

Get pre-qualified.

I’ll Do More Than Help You Get Financed!

I am dedicated to helping you through the entire process, delivering world-class service all along the way.I can help you find the right home, negotiate the right terms, and then make sure that you actually get to the closing table.

Simple Ideas for Raising Money for a Down Payment

1.Have a garage sale.You’ll be surprised how much money you can raise this way, especially if you’re willing to give up the junk you’ve been hoarding for years.

2.Raid your savings.Even if you’ve been trying to keep a little stashed away, this is important.If your kids have a savings account, ask them if you could borrow from theirs as well.

3.Borrow from your retirement fund.Many retirement funds (401k, IRA, etc.) have provisions for you to borrow from them for important reasons.This counts as an important reason!Check with your plan administrator or your financial advisor about this option.The nice part about this is that as you repay your loan, you pay the interest to yourself.

4.Ask your family.This is probably the hardest thing for some to do, but you might be surprised at how willing a family member would be to help you buy a house, even if they’ve said “no” to you before when you tried to borrow for other things.If you do this, you’ll need a form for your banker stating that this is a gift and not a loan.(Yes, you can still repay your family member.It just can’t be a formal loan.)

5.Sell something.If you look around your house, you might find items that have value, but that you haven’t used in a long time:An old coin collection, an old musical instrument that no one plays anymore, an extra freezer you don’t really need, a second (or third) car you could do without.Often, the cash from selling these items can add up quickly.

As a buyer watching the real estate market, you are undoubtedly aware that there are more "short sale" properties on the market, at least in many areas. A short sale is a home where the market value of the property is LESS than the loan amount owed to one or more lenders. Note that there may be state or regional differences in the requirements and paperwork - ask your agent.

Don't be scared off by these properties as they may turn out to be a great deal for you. But you need to know a few things:

A seller must disclose if the home either IS a short sale or likely will be due to the market value.

A short sale MUST be approved by the lender. Even though a seller might accept your offer, it will be subject to approval by the lender

Lender will (likely) send out an appraiser to evaluate the property in light of recent sales

Lender must receive hardship letter and other required documents from the seller in order to approve a short sale

Lender will likely have a checklist of requirements and paperwork required for the short sale process

Lender will likely request that the sale be "as is" and due to hardship will probably not approve any credit for repairs

Be prepared for a short sale to take more time (total time may be 60 days +/-)

If you are making an offer:

Make sure you make the offer contingent on the short sale being approved by the lender and set a time frame for approval

An addendum form is advised to outline the short sale contingency terms and conditions (this is a optional state form here, but there may be other requirements elsewhere in

California

and in other states)

A letter to the seller is also advised requesting written confirmation that the lender has received the hardship letter and other documents as part of the short sale application

There is a good chance there will be more than 1 offer

It is still prudent to conduct a home inspection even though the lender will probably require an "as is" sale

It is possible the seller will not be able to do any Section 1 repairs resulting from the Wood Destroying Pest Inspection (e.g., termites) due to hardship of funds

Be sure to discuss issues and questions with your agent before proceeding, preferably someone who has some experience with short sales.

To calculate your property tax we have to have the taxable value of your home. Using the assumption of $234,000 and the home is located in tax district #570

1. Figure the “assessed value” by multiplying the taxable value by the “assessment ratio” of 35% (this ratio is set by law)……In this example:

$234,000 x .35= $81,900

2. Locate the “property tax rate” for tax district #570 (I did this for you). In the 2004-2005 column tax district #570 has a property tax rate listed at 2.9471 or $2.9471 for each $100 of assessed value.

3. Finally, just multiply the “assessed value” by the “property tax rate”.